Advanta India Closes FCCB Issue

Advanta India Ltd has successfully closed the issue of its Foreign Currency Convertible Bonds ("FCCBs") aggregating US$ 50 million on June 30, 2011 with Credit Suisse (Singapore) Limited as the Sole Bookrunner to the issue.

The Issue and Allotment Committee of the Company has consequently authorized the offer of the FCCBs pursuant to the aforesaid offering aggregating to USD 50 million (United States Dollars 50 million) carrying a coupon rate of 3.5% + 3 months US$ Libor, having a maturity of 5 years and 1 day and convertible into equity shares of face value of Rs 10 each ("Equity Shares") of the Company at an initial conversion price of Rs. 282.84 per Equity Share.

The initial conversion price is at a 10% premium over the floor price determined in accordance with the requirements of the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993, as amended, with a fixed rate of exchange on conversion of Rs, 44.94 - US$ 1.

The Company intends to use the proceeds from the Issue of the FCCBs primarily for investments in overseas subsidiaries and any other purposes as permitted under relevant approvals and applicable Indian laws.

Approval in-principle has been obtained from the Singapore Exchange Securities Trading Limited (the "SGX-ST") for the listing and quotation of the FCCBs on the Official List of the SGX-ST, Final approval will be granted when the FCCBs will have been admitted to the Official List of the SGX-ST, which is currently expected to be on or around July 11, 2011.

Admission of the FCCBs to the Official List of the SGX-ST and quotation of the FCCBs on the SGX-ST and the above approval in-principle of the SGX-ST is not to be taken as an indication of the merits of the Company, its associated companies or the FCCBs.

The stock was trading at Rs.256.70, up by Rs.5.10 or 2.03%. The stock hit an intraday high of Rs.263.90 and low of Rs.253.15.

The total traded quantity was 1.34 lakhs compared to 2 week average of 2.14 lakhs.

Source : Equity Bulls

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